Fitch downgrades Sinek to BB+

Fitch Ratings said it downgraded Tatarstan government-owned investment holding company Svyazinvestneftekhim's (Sinek) long-term foreign and local currency issuer default ratings to BB+ from BBB- and short-term foreign currency issuer default rating to B from F3.

The outlooks on the long-term issuer default ratings are negative.

Fitch said the downgrade follows the repayment of the notes issued by Edel Capital SA, which were guaranteed by the Republic of Tatarstan (BBB-/negative).

Sinek used a combination of internal funds and borrowing from a related party, AK BARS Bank (BB-/negative, viability rating b-), to fund the repayment.

The agency previously noted that if Sinek's prospective debt was not guaranteed by Tatarstan, it would rate Sinek using a top-down approach one notch below the rating of its parent.

Fitch views Sinek’s ties with its owner as strong. These include 100% ownership by Tatarstan, strong tangible sub-sovereign support, and the influence exerted by the Tatarstan government on Sinek and its portfolio of companies.

The negative outlook mirrors the outlook on Tatarstan.

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